On Thursday, August 2, the Yavapai-Apache Nation ("YAN"), a creditor of the Iipay Nation's Santa Ysabel Resort and Casino ("Casino"), filed a motion to dismiss Casino's bankruptcy case for lack of eligibility and authority.
Tribes and practitioners continue to monitor this case closely to glean what they can about the applicability of United States bankruptcy laws to tribes and their enterprises. Most practitioners agree that bankruptcy relief is not generally available to tribes because as governmental units, they are not eligible debtors under the Code.
Following that line of argument, YAN argues that the Casino - even if it is some type of unincorporated company - is not an entity separate from the Iipay Nation that would be eligible relief under the Code. YAN further argues that without the General Council or Legislative Branch of the Iipay Nation and the National Indian Gaming Commission's approval, this petition was not properly authorized and should be dismissed. Santa Ysabel Resort and Casino's responsive briefing is due August 16, 2012.
The motion is set to be heard on September 4, 2012 at 11:00 a.m.
Stay tuned for additional posts as we, and much of Indian country, continue to monitor this suit.